Govt opens portal for auto-makers to use below electrical automobile scheme
International electrical automobile (EV) giants can now apply for the scheme to advertise manufacturing of electrical passenger vehicles in India, which presents considerably decrease import tax for automakers that pledge to put money into home electrical automobile manufacturing.
Union Heavy Industries Minister H D Kumaraswamy inaugurated the portal for accepting purposes below the scheme, which can stay open until October 21. He reiterated that EV large Tesla is barely concerned with opening showrooms in India to promote its vehicles, and never inclined in direction of organising manufacturing amenities within the nation.
“Their [Tesla’s] curiosity is barely to open the showroom. They need to promote their automobile in India. Aside from that, really, there isn’t any additional growth about this,” he stated.
Responding to a different query on studies quoting Mercedes-Benz officers saying that it was not concerned with investing within the scheme, Kumaraswamy stated the posh car-maker has already invested “in a giant manner” earlier than the opening of the appliance window on Tuesday.
Officers defined that below the scheme, eligible funding should be capitalised within the books of account of the applicant “after the date of approval”, subsequently, tools and equipment “should be put to make use of after turning into an permitted applicant”.
The Minister shared that 4-5 auto companies have proven preliminary curiosity within the scheme, nonetheless, it stays to be seen what number of corporations really apply for it, because the portal has been opened from Tuesday.
Additional, the Ministry of Heavy Industries shall have the fitting to open the appliance window, as and when required until March 15, 2026.
Secretary within the Heavy Industries Ministry Kamran Rizvi stated unique tools producers (OEMs) making use of below the scheme and availing decrease import tax should roll out a automobile with at the very least 25 per cent home worth addition (DVA) inside three years time, and improve the DVA to 50 per cent inside 5 years.
He stated the heavy industries ministry is writing to all nations having automotive majors, together with Germany, the US, the UK, Czechoslovakia, and their embassies for encouraging participation below the scheme.
Nevertheless, he stated, the funding restrictions in India relevant to land border sharing nations like Pakistan and China, amongst others, shall stay in place.
Automakers can be permitted to import as much as 8,000 EVs at a lowered obligation fee of 15 per cent, in comparison with the present 70-100 per cent, supplied they decide to investing Rs 4,150 crore in native EV manufacturing, in accordance with the brand new EV coverage notified by the federal government.
They are going to be required to start operations at their manufacturing amenities in India inside three years of receiving approval and should meet specified native content material necessities, in accordance with the notified tips below the Scheme to Promote Manufacturing of Electrical Passenger Vehicles in India.
The scheme was notified on March 15 final 12 months by the heavy industries ministry.
The utmost obligation foregone per applicant has been capped at Rs 6,484 crore on the funding made below the scheme.
The applicant is required to arrange a producing facility and begin operations for manufacturing of eligible merchandise — e-4W inside a interval of three years from utility approval date.
Expenditure incurred on new plant, equipment, tools and related utilities, engineering analysis and growth (ER&D) can be eligible for availing investment-linked advantages below the scheme.
Nevertheless, expenditure on land won’t be thought of, though new buildings of the primary plant and utilities can be thought of as a part of the funding, supplied it doesn’t exceed 10 per cent of dedicated funding.
The expenditure incurred on charging infrastructure can be thought of as much as 5 per cent of the dedicated funding.
The applicant’s dedication to arrange manufacturing amenities, achievement of DVA and compliance with situations stipulated below the scheme shall be backed by a financial institution assure from a scheduled industrial financial institution in India, equal to the whole obligation to be foregone, or ₹4,150 crore, whichever is larger.
A non-refundable utility charge of ₹5,00,000 can be payable by the applicant whereas submitting the appliance kind.
To qualify and obtain advantages below the scheme, an applicant is required to have a world group income from automotive manufacturing of a ₹10,000 crore.
Furthermore, the worldwide funding of an organization or its group corporations in fastened belongings should be at the very least Rs 3,000 crore, based mostly on the newest audited annual monetary statements on the time of submitting the appliance.
Printed – June 24, 2025 10:48 pm IST
